In the Ohio edition of the Small Business Administration’s 2015 Resource Guide for Small Businesses, Paula Panissidi uses an interesting phrase to describe a promising small business. She calls them “gazelles,” and specifically refers to those companies that are likely to survive despite great challenges. According to her, business owners at this stage will only succeed if they have proper support, such as training.
A “gazelle” could refer to a business poised for further growth and success.While seeking out proper mentorship is one aspect of fostering business growth, another is the availability of capital, perhaps through an appropriate SBA loan. Since not all businesses will meet stringent loan standards, owners of “gazelle” businesses should acquaint themselves with the different types of loans mentioned in this resource. These include:
- 7(a) loan programs: Because it encompasses a vast range of uses, this loan might suit many businesses in a position to grow. Qualifying businesses can acquire lands, purchase supplies or acquire new inventory, among other options, and loan amounts range as high as $3.75 million for a single business. As an extremely popular option for SBA transactions, businesses may be interested in this option for material additions.
- 504 loan programs: Designed specifically for small business financing, this type of program applies to modernization purposes, refinancing programs and land improvements. Applicant businesses need to have earned at least $5 million average income for two years to qualify, making this appropriate for ventures that already have some proof of success.
- Microloan programs: Instead of a large investment, “gazelles” may find these programs more attractive. They apply to some of the same areas as the above loans and can be paid off over a period as long as six years. Compared to the multi-million dollar caps in a 7(a) program, the maximum for a microloan is $50,000.
Growth Capital provides financing resources for small businesses in the Ohio area. Learn more about how to get an SBA loan and make it work for your business by visiting our website.